Prime Group Holdings, a New York-based real estate group that owns self-storage and other real estate interests, has acquired a storage facility from Madison Development LLC in the Canarsie neighborhood of Brooklyn, N.Y., for $53 million. The 82,862-square-foot property at 1084-1098 Rockaway Ave. had been managed by real estate investment trust and third-party management firm CubeSmart but has been rebranded under the Prime Storage Group name, according to a source.
The Rockaway asset is Prime Group’s first location in New York City. The company will fund the purchase through a $42 million loan from Arbor Realty Trust Inc., a source reported. It has acquired 1.36 million square feet of self-storage this year, according to its website.
Madison acquired the Rockaway site as a vacant property in 2014 for $7 million. The storage facility wasn’t listed for sale. “If you develop good assets, people want to buy them, and that’s what happened to us,” Adam Gordon, managing partner for Madison, told a source. “We were very happy holding, but we got a good offer, so we took it.”
Madison owns 600,000 square feet of self-storage in New York City, according to a source.
Headquartered in Saratoga Springs, N.Y., Prime Group owns and manages 170 self-storage facilities in 23 states. Its operating portfolio comprises more than 9.6 million rentable square feet.
Sources:
- Real Estate Weekly: Prime Group Buys CubeSmart Self-Storage Facility in Brooklyn for $53 Million
- The Real Deal: Brooklyn Storage Facility Sells for $53M
